JPMorgan Chase (NYSE:JPM) is planning to cut its workforce this year, mostly through attrition in order to reduce expenses and boost profits.
The bank says it will shed between 3,000 and 4,000 workers by the end of 2013. Most of the cuts are expected to come at its branches, which employ 63,500 workers. The number of employees at local branches is anticipated to fall 20% by 2015, Reuters noted.
While other banks have reduced their number of local branches, JPMorgan has continued to open new branches. It expects to add about 100 branches this year. However, it will shift its staffing focus away from tellers and toward financial services and asset management personnel to increase sales and cater to wealthier customers.
JPMorgan has previously announced plans to cut between 13,000 and 15,000 jobs over the next two years. The bank has a worldwide workforce of about 258,695 employees.
A number of other banks have recently announced staff cuts, including:
- ING Groep (NYSE:ING) — 2,400 layoffs in its European operations.
- Barclays (NYSE:BCS) — 3,700 layoffs as part of its post-LIBOR scandal restructuring.
- Citigroup (NYSE:C) — 11,000 workers, mostly in its global consumer banking business.
Shares of JPMorgan Chase slipped fractionally in Tuesday midday trading.